Cardlytics Inc (CDLX) 2023 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Q2 2023 Cardlytics, Inc. Earnings Conference Call. (Operator Instructions) Please be advised, today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 Cardlytics, Inc. 2023 年第二季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Nick Lynton, Chief Legal and Privacy Officer.

現在我想將會議交給今天的發言人、首席法律和隱私官尼克林頓 (Nick Lynton)。

Good evening, and welcome to the Cardlytics Second Quarter 2023 Financial Results Call. Before we begin, let me remind everyone that today's discussion will contain forward-looking statements. Based on our current assumptions, expecting and beliefs, including expectations about our future financial performance and results, including for the third quarter of 2023; adding new partners to the network and increasing our MAUs; our partners' transition to the new Ad Server and user experience; the growth and expansion of our advertiser base; the impacts of our new product initiatives, including our retail media network; our liquidity and our growth and profitability, including expectations related to achieving positive operating cash flow, free cash flow and adjusted EBITDA on an annual basis.

晚上好，歡迎參加 Cardlytics 2023 年第二季財務業績電話會議。在開始之前，讓我提醒大家，今天的討論將包含前瞻性陳述。基於我們目前的假設、預期和信念，包括對我們未來財務表現和業績的預期，包括 2023 年第三季；在網路上新增合作夥伴並增加我們的月活躍用戶數；我們的合作夥伴過渡到新的廣告伺服器和使用者體驗；我們廣告客戶群的成長與擴大；我們的新產品計劃的影響，包括我們的零售媒體網絡；我們的流動性以及我們的成長和獲利能力，包括與每年實現正經營現金流、自由現金流和調整後 EBITDA 相關的預期。

For a discussion of the specific risk factors that could cause our actual results to differ materially from today's discussion, please refer to the Risk Factors section of the company's 10-Q for the quarter ended June 30, 2023, which has been filed with the SEC.

有關可能導致我們的實際結果與今天的討論產生重大差異的具體風險因素的討論，請參閱公司截至 2023 年 6 月 30 日的季度 10-Q 的風險因素部分，該報告已向 SEC 備案。

Also during this call, we will discuss non-GAAP measures of our performance. GAAP financial reconciliations and supplemental financial information are provided in the press release issued today and the 8-K that has been filed with the SEC. Today's call is available via webcast, and a replay will be available for one week. You can find the information I have just described in the Investor Relations section of the Cardlytics website.

此外，在本次電話會議中，我們也將討論非公認會計準則的績效衡量標準。今天發布的新聞稿和已向 SEC 提交的 8-K 中提供了 GAAP 財務調節表和補充財務資訊。今天的電話會議可以透過網路直播進行，重播將持續一週。您可以在 Cardlytics 網站的投資者關係部分找到我剛剛描述的資訊。

Please note that a supplemental presentation to our second quarter results has also been posted on our Investor Relations website. Joining us on the call today is Cardlytics CEO, Karim Temsamani; and Director of Corporate Development and Investor Relations, Robert Robinson. Following their prepared remarks, we'll open the call to your questions. With that said, let me turn the call over to Karim.

請注意，我們第二季業績的補充介紹也已發佈在我們的投資者關係網站上。今天加入我們電話會議的是 Cardlytics 執行長 Karim Temsamani；以及企業發展和投資者關係總監 Robert Robinson。在他們準備好的發言之後，我們將開始回答您的問題。話雖如此，讓我把電話轉給卡里姆。

Good evening, and thank you for joining our Q2 2023 earnings call. This was a solid quarter for Cardlytics, as billings, revenue and adjusted EBITDA all exceeded our expectations for the quarter. The results reflect our team's hard work in transforming the business during a difficult period for the economy and advertising markets. Adjusted EBITDA performance in Q2 improved by $11.7 million year-over-year as our efficiency measures and our new product initiatives to core.

晚上好，感謝您參加我們的 2023 年第二季財報電話會議。對於 Cardlytics 來說，這是一個穩定的季度，因為帳單、收入和調整後的 EBITDA 都超出了我們對該季度的預期。這些結果反映了我們團隊在經濟和廣告市場困難時期為業務轉型所做的努力。由於我們的效率措施和新產品計劃是核心，第二季調整後的 EBITDA 業績年增了 1,170 萬美元。

And our operating cash flow for the quarter was positive $5.7 million. These are great outcomes delivered ahead of schedule. While we are excited about the positive changes on the way and the early momentum we have in driving new customer-facing product innovation, we have much more to accomplish in the business.

本季我們的營運現金流為正 570 萬美元。這些都是提前交付的偉大成果。雖然我們對在推動面向客戶的新產品創新方面所取得的積極變化和早期勢頭感到興奮，但我們在業務方面還有很多工作要做。

Every transformation has challenges, but we are making the right long-term decisions for Cardlytics and as our numbers demonstrate, we are clearly making progress.

每一次轉型都會面臨挑戰，但我們正在為 Cardlytics 做出正確的長期決策，正如我們的數據所表明的那樣，我們顯然正在取得進展。

Here are our results for Q2. Billings increased 1.6% year-over-year to $109.4 million. U.S. billings increased 7% year-over-year. Revenue increased 1.7% year-over-year to $76.7 million. Adjusted contribution increased 6.8% year-over-year to $37.5 million. Bridg revenue decreased 3% year-over-year to $6 million. This is in line with our expectations of short-term variability in the business given our focus on Bridg's retail media network product.

這是我們第二季的結果。比林斯年增 1.6% 至 1.094 億美元。美國的帳單年增 7%。營收年增 1.7% 至 7,670 萬美元。調整後捐款年增 6.8% 至 3,750 萬美元。 Bridg 營收年減 3% 至 600 萬美元。鑑於我們專注於 Bridg 的零售媒體網路產品，這符合我們對業務短期波動的預期。

Our focus on sales effectiveness, delivering new products and making operational improvement led us to exceed expectations despite lukewarm consumer spend and advertiser uncertainty. While restaurants and retail categories are still underperforming versus last year, given this trend, the travel entertainment vertical continues to outperform for us even as consumer spending in that category slows.

儘管消費者支出不冷不熱且廣告商不確定，但我們對銷售效率、提供新產品和改善營運的關注使我們超出了預期。儘管餐廳和零售類別的表現仍低於去年，但考慮到這一趨勢，即使該類別的消費者支出放緩，旅遊娛樂垂直行業的表現仍繼續優於去年。

On the expense side, we continue to make the right financial decisions for the business. We renegotiated several contracts in the quarter and implemented cost optimizations across AWS and Snowflake.

在費用方面，我們繼續為業務做出正確的財務決策。我們在本季度重新談判了幾份合同，並在 AWS 和 Snowflake 上實施了成本優化。

The underlying fundamentals in our business continued to show strength. Unique consumers activating offers increased 2% year-over-year in Q2. We saw total activations increased 10% year-over-year and total redemptions 7% year-over-year. Just like last quarter, we increased the number of users activating offers year-over-year and our current users are engaging more often.

我們業務的基本面持續表現強勁。第二季啟動優惠的獨特消費者數量較去年同期成長 2%。我們發現總活化量年增 10%，總兌換量較去年同期成長 7%。就像上季一樣，我們啟動優惠的用戶數量逐年增加，並且我們目前的用戶參與的頻率更高。

While we don't have any significant updates to our partner pipeline, discussions with multiple top 20 U.S. banks and several high-upside fintechs remain ongoing. And we are confident we will sign at least one of these major partners by the end of 2023. We will continue to update you as we make progress on these potential partnerships.

雖然我們的合作夥伴管道沒有任何重大更新，但與多家美國 20 強銀行和幾家高端金融科技公司的討論仍在進行中。我們相信，到 2023 年底，我們將與這些主要合作夥伴之一簽約至少。

Now I would like to discuss our strategic initiatives. As we are making short-term financial progress, we are also becoming a strong product-led organization, where our partners and consumers are at the center of the decisions we make as a business. First, as you know, we announced this quarter that we renegotiated our contract with Chase.

現在我想討論一下我們的策略舉措。在我們取得短期財務進展的同時，我們也正在成為一個強大的以產品為主導的組織，我們的合作夥伴和消費者是我們作為企業所做的決策的中心。首先，如您所知，我們本季宣布與大通重新談判合約。

While we cannot discuss financial details outside of what we already presented in last month's 8-K, this is a testament to the strategic value of our partnership. Additionally, we are happy to announce that Chase is 100% live on the new user experience.

雖然我們無法討論上個月 8-K 中已介紹的內容之外的財務細節，但這證明了我們合作夥伴關係的策略價值。此外，我們很高興地宣布 Chase 100% 享受新的用戶體驗。

Second, our 3 important product initiatives for our bank partners and advertisers, the new Ad Server, our new user experience and cloud migration are on track to deliver long-term benefits. All our major U.S. banks have data in AWS, and most have systems in AWS. We expect nearly all major banks to move to the new Ad Server end user experience by the middle of 2024 versus the end of 2023. As we said in the past, bank time lines can change quarter to quarter. We're having constructive conversations with our partners, and our goal is for adoption to happen as soon as possible. Our partners continue to adopt our ad decisioning engine or ADE, to drive higher monetization and offer relevancy for the business. Most of our banks have now migrated or have agreed to migrate to ADE.

其次，我們為銀行合作夥伴和廣告商推出的 3 項重要產品計劃，即新的廣告伺服器、新的使用者體驗和雲端遷移，有望帶來長期利益。我們所有的美國主要銀行都在 AWS 中擁有數據，大多數銀行都在 AWS 中擁有系統。我們預計幾乎所有主要銀行都會在 2024 年中期（而不是 2023 年年底）轉向新的廣告伺服器最終用戶體驗。我們正在與合作夥伴進行建設性對話，我們的目標是盡快採用。我們的合作夥伴繼續採用我們的廣告決策引擎或 ADE，以推動更高的貨幣化並提供業務相關性。我們的大多數銀行現已遷移或已同意遷移到 ADE。

Not only this, we are still seeing great results using ADE. Billings using enhanced targeting are up 10%. Activations are up 6.5% and redemptions are up 5.7%. Third, new advertising product initiatives are showing similarly exciting results. For example, multi-tier offers, which provide variable incentives based on objectives, have been effective in shifting purchase channel behavior. In a pilot of a 21-day period, in-store channels as a percentage of total spend increased from 34% to 71%.

不僅如此，我們仍然看到使用 ADE 取得了很好的效果。使用增強型定位的帳單增加了 10%。啟動量成長 6.5%，贖回量成長 5.7%。第三，新的廣告產品計劃也顯示出同樣令人興奮的結果。例如，根據目標提供可變激勵的多層優惠可以有效改變購買管道行為。在為期 21 天的試點中，店內通路佔總支出的百分比從 34% 增加到 71%。

The product and engineering teams are also hard at work on new capabilities and improvements. We launched our first campaign with receipt-level reporting. This is important because it opens up incremental demand from CPGs and retailers who need product-level reporting. It also gives consumers access to better content and offers they want to see. We reduced the time it takes to process transactions from 70 hours to 35 hours. This reduction allows us to deliver rewards sooner to our partners' customers.

產品和工程團隊也正在努力開發新功能和改進。我們發起了第一個帶有收據等級報告的活動。這很重要，因為它打開了需要產品級報告的消費品和零售商的增量需求。它還使消費者能夠獲得他們想要看到的更好的內容和優惠。我們將處理交易的時間從 70 小時減少到 35 小時。這一減少使我們能夠更快地向合作夥伴的客戶提供獎勵。

It also makes our billings and our serving systems more efficient. We can make more effective adjustments based on budget consumption, meaning we can more efficiently throttle campaigns at risk of over-delivering or boost campaigns that aren't meeting targets.

它還使我們的帳單和服務系統更加有效率。我們可以根據預算消耗進行更有效的調整，這意味著我們可以更有效地限制超額投放風險的廣告活動或增加未達到目標的廣告活動。

We launched a target return on our spending pricing pilot in the past months. This pricing model leverages a dynamic marketplace and features bidding on impressions, dynamic pricing adjustments and immediate reconnection of campaign spend. While early, these capabilities at scale will vastly improve the efficiency of our financials in the long term.

過去幾個月，我們啟動了支出定價試點的目標回報。這種定價模型利用動態市場，並具有對展示次數出價、動態定價調整和廣告活動支出立即重新連接的功能。雖然還處於早期階段，但從長遠來看，這些大規模能力將大大提高我們的財務效率。

Fourth, we continue to diversify our business. We are making fast progress in transforming the Bridg business. Our retail media network pilots have received positive responses from major national CPG brands, and the initial feedback we've gathered highlights the excitement around the flexibility they'll have in building sophisticated audiences, seamless access to a national footprint and user friendly tools that empower them to get valuable insights, drive substantial incremental sales and accurately measure the impact of their campaigns.

第四，我們的業務不斷多元化。我們在 Bridg 業務轉型方面正在快速取得進展。我們的零售媒體網路試點已經得到了主要國家消費品品牌的積極響應，我們收集到的初步反饋凸顯了他們在建立成熟受眾、無縫訪問全國足跡和用戶友好工具方面所具有的靈活性，這些都增強了我們的能力他們能夠獲得有價值的見解、大幅增加銷售並準確衡量其行銷活動的影響。

Product is not the only area we are upgrading. We are responsibly investing in our people, too. I want to welcome our new CFO, Alexis DeSieno, to Cardlytics. We are thrilled to have attracted such a talented and capable executives. Alexis' track record of collaboration across business lines and driving financial results through data-driven analysis, makes her the perfect fit to drive long-term growth and profitability for Cardlytics. She starts in less than 2 weeks and excited to speak with all of you on our next earnings call.

產品並不是我們升級的唯一領域。我們也負責任地投資我們的員工。我歡迎我們的新任財務長 Alexis DeSieno 加入 Cardlytics。我們很高興吸引瞭如此有才華和能力的主管。 Alexis 擁有跨業務線協作以及透過數據驅動分析推動財務績效的良好記錄，這使她成為推動 Cardlytics 長期成長和獲利的最佳人選。她將在不到兩週的時間內開始工作，並很高興能在我們的下一次財報電話會議上與大家交談。

Alexis is just one example of the high-level talent we are adding to the business. Cardlytics potential and the tangible improvements we are making, attracting diverse and innovative talent. We saw several senior level hires with exceptional backgrounds during our product, engineering and sales teams this quarter, which will continue to elevate our capabilities and bolster our competitiveness in the market.

亞歷克西斯只是我們為業務增加的高級人才之一。 Cardlytics 的潛力和我們正在做出的實際改進，吸引了多元化的創新人才。本季我們的產品、工程和銷售團隊聘用了幾位具有特殊背景的高級人才，這將繼續提升我們的能力並增強我們在市場上的競爭力。

Before I turn to our market trends and outlook, I want to share some additional insight from our platform. To give investors a better idea of our value proposition and our future potential, each quarter we'll surface some of the data we share with our advertising customers.

在討論我們的市場趨勢和前景之前，我想分享一些來自我們平台的額外見解。為了讓投資人更了解我們的價值主張和未來潛力，每個季度我們都會公開與廣告客戶分享的一些數據。

This quarter, we were focused on multiline retail, a category that includes over 100 brands that most of them sell items such as apparel, electronics and home goods. In the quarter, we saw consumers spend $67 billion, a decline of 1.3% year-over-year and an uptick of 6.1% quarter-over-quarter.

本季度，我們將重點放在多線零售，該類別包括 100 多個品牌，其中大多數銷售服裝、電子產品和家居用品等商品。本季度，消費者支出為 670 億美元，年減 1.3%，季增 6.1%。

Average spend per customer is $196 per month in this category. This is a competitive category where customers exhibit lower loyalty. On average, consumers choose to spend with 2.7 brands per quarter. This loyalty decreases further during the holiday season in Q4, which represents 28% of the yearly spend. On a state-by-state basis for Q2, California represented 16% of multiline retail spend followed by Texas at 11% and Florida at 9%. Interestingly, despite the low brand loyalty, this market is not fragmented. Multiline retail has seen significant consolidation in recent years, with 4 brands representing over 85% of the spend that we analyze. This has been maintained year-over-year with the top 2 brands gaining market share largely from the next 2 brands.

此類別中每位客戶的平均支出為每月 196 美元。這是一個競爭激烈的類別，客戶的忠誠度較低。平均而言，消費者每季選擇在 2.7 個品牌上消費。這種忠誠度在第四季度的假期期間進一步下降，佔年度支出的 28%。以第二季各州的情況來看，加州佔多線零售支出的 16%，其次是德州（11%）和佛羅裡達州（9%）。有趣的是，儘管品牌忠誠度較低，但這個市場並不分散。近年來，多線零售業出現了顯著的整合，其中 4 個品牌占我們分析的支出的 85% 以上。這一情況逐年保持，前 2 個品牌主要從接下來的 2 個品牌中獲得市場份額。

These are the kinds of insights that we share with our clients to help them make critical business decisions. And we're excited to continue to share more of these insights with you moving forward.

我們與客戶分享這些見解，以幫助他們做出關鍵的業務決策。我們很高興能夠繼續與您分享更多這些見解。

Moving to market trends and our outlook. Consumer spend in the first half of the year was flat compared to 2022. Year-over-year, spend was down 2% in Q2. Restaurant and retail spend are still struggling, growing 1% and declining 3% year-over-year, respectively. Travel spend also slowed significantly at 1% growth year-over-year.

轉向市場趨勢和我們的展望。與 2022 年相比，今年上半年的消費者支出持平。餐廳和零售支出仍舉步維艱，年比分別成長 1% 和下降 3%。旅行支出也大幅放緩，年增 1%。

There is positive news, too, the consumer still remains strong based on deposit data, and the July Consumer Confidence Index increased for the third consecutive month, hitting its highest level in 2 years. Labor markets have softened, but job growth remains solid. Inflation appears to be declining as spread red hikes have their intended effect.

也有正面消息，存款數據顯示消費者依然強勁，7月消費者信心指數連續第三個月上升，創兩年來最高。勞動市場已經疲軟，但就業成長依然強勁。隨著紅色升息達到預期效果，通膨似乎正在下降。

Given the uncertain economy and growth environment, we do expect some bumpiness in our results over the next several quarters. While there will be differences quarter-to-quarter, we are now on a path to sustain positive operating cash flow, free cash flow and adjusted EBITDA on an annual basis. Regardless of the economic environment, the teams are focused on improving the business, and we are moving forward with a disciplined approach.

鑑於經濟和成長環境的不確定性，我們預計未來幾季的業績會出現一些波動。雖然季度與季度之間會存在差異，但我們現在正致力於每年維持正的營運現金流量、自由現金流量和調整後 EBITDA。無論經濟環境如何，團隊都專注於改善業務，我們正在以嚴格的方式前進。

The organizational changes we are making continue to give our teams room to operate with speed and a clear focus. Our results this quarter are great sign that our strategy and priorities are moving the company towards achieving consistent growth and profitability.

我們正在進行的組織變革繼續為我們的團隊提供快速運作和明確重點的空間。我們本季的業績是一個很好的跡象，表明我們的策略和優先事項正在推動公司實現持續成長和獲利。

Now I will turn it over to Robert, who is filling in this quarter to discuss our financial results.

現在我將把它交給羅伯特，他將填寫本季度的報告來討論我們的財務表現。

Thank you. Like Karim said, we are excited about our results in Q2. I've seen the considerable effort from our teams in the past few months, and this outcome is well deserved. Our financials are under control, and we are focused on positioning the business for long-term success. The numbers are a great sign that the business is moving in the right direction, but we want to stress that the near-term economy and advertising environment are still uncertain.

謝謝。正如卡里姆所說，我們對第二季的結果感到興奮。我看到了我們團隊在過去幾個月付出的巨大努力，這個結果是當之無愧的。我們的財務狀況處於掌控之中，我們專注於定位業務以獲得長期成功。這些數字是一個很好的跡象，表明業務正在朝著正確的方向發展，但我們想強調的是，短期經濟和廣告環境仍然不確定。

The chance of a severe to moderate recession has decreased but consumer spend is still uneven, causing advertisers to continue to review costs and exercise caution with their budgets.

出現嚴重至中度衰退的可能性已經下降，但消費者支出仍然不平衡，導致廣告商繼續審查成本並謹慎對待預算。

We expect some variability in our quarter-to-quarter results moving forward. Here are the numbers for Q2. Billings increased 1.6% year-over-year to $109.4 million. Revenue increased 1.7% year-over-year to $76.7 million. Adjusted contribution increased 6.8% year-over-year to $37.5 million. Bridg revenue decreased 3% year-over-year. Like we mentioned last quarter and earlier in the call, the transformation of the business will cause fluctuations in our growth rates quarter-to-quarter.

我們預計未來季度業績會出現一些變化。這是第二季的數字。比林斯年增 1.6% 至 1.094 億美元。營收年增 1.7% 至 7,670 萬美元。調整後捐款年增 6.8% 至 3,750 萬美元。 Bridg 營收年減 3%。正如我們在上個季度和早些時候的電話會議中提到的，業務轉型將導致我們的成長率出現季度波動。

As we begin to convert proof of concepts, we expect growth rates to increase and normalize in the future.

當我們開始轉變概念驗證時，我們預期未來成長率將會增加並正常化。

Geographically, U.S. revenue increased 7% year-over-year. U.K. revenue decreased 35% year-over-year. U.K. revenue is still affected due to the loss of a bank partner in the channel but we have opportunities in the pipeline to increase our supply of U.K. MAUs to historical levels. We expect growth rates in the U.K. business to normalize in future quarters.

從地理來看，美國營收年增 7%。英國營收年減 35%。由於失去通路中的銀行合作夥伴，英國的收入仍然受到影響，但我們有機會將英國月活躍用戶的供應量增加到歷史水平。我們預計英國業務的成長率將在未來幾季正常化。

Moving to customer concentration. Our top 5 customers accounted for 15.7% of revenue this quarter compared to 15.8% in Q2 of 2022. Concentration will remain a key focus as we continue to grow and expand our advertiser base. Adjusted EBITDA was a loss of $4.1 million this quarter compared to a loss of $15.8 million in Q2 of 2022. Operating cash flow was positive $5.7 million. These results highlight our discipline in the actions we've taken to rightsize our cost base.

轉向客戶集中。我們的前 5 名客戶佔本季營收的 15.7%，而 2022 年第二季為 15.8%。本季調整後 EBITDA 虧損 410 萬美元，而 2022 年第二季虧損 1,580 萬美元。這些結果凸顯了我們為調整成本基礎所採取的行動的紀律性。

That said, we do expect choppiness over the next several quarters. Our expectation moving forward is to be operating cash flow positive and adjusted EBITDA positive on an annual basis starting in 2024. On the balance sheet, we ended Q2 with $92.1 million in cash and cash equivalents compared to $139.2 million at the end of Q1 of 2022. During Q2, we used $4.3 million of cash in operating activities and $5.5 million for software development and capital expenditures.

也就是說，我們確實預期未來幾季會出現波動。我們未來的預期是，從2024 年開始，每年營運現金流為正，調整後的EBITDA 為正。一季末為1.392 億美元第二季度，我們在經營活動中使用了 430 萬美元的現金，550 萬美元用於軟體開發和資本支出。

Additionally, we have paid $50.1 million in cash related to the Bridg earnout. As of the end of Q2, we had $7 million of unused available borrowings under our line of credit. We still believe that our available liquidity is sufficient to support our business plans. We had 37.1 million shares outstanding at the end of Q2 compared with 33.7 million at the end of Q1 of 2023. Diluted weighted average shares outstanding during the quarter was 34.8 million compared to 33.7 million for Q2 of 2022. As of Q2, we have issued 2.7 million shares in connection with the Bridg earnout.

此外，我們還支付了與 Bridg 收益相關的 5,010 萬美元現金。截至第二季末，我們的信用額度下有 700 萬美元未使用的可用借款。我們仍然相信我們可用的流動資金足以支持我們的業務計劃。截至第二季末，我們的流通股數為3,710 萬股，而2023 年第一季末的流通股數量為3,370 萬股。截至第二季度末為3,370 萬股。

MAUs were $188.1 million, and an increase of 4.6% year-over-year. ARPU during the second quarter was $0.38, which is flat year-over-year.

月活躍用戶數為 1.881 億美元，年增 4.6%。第二季的 ARPU 為 0.38 美元，與去年同期持平。

Now turning to guidance. While there is renewed optimism in the economy, our advertising clients are still taking a cautious approach to 2023. We still believe this uncertainty is disproportionately affecting smaller advertising platforms. That said, we do expect sequential improvement in our Q3 results, given seasonality and our focus on operational efficiency. With that in mind, for Q3, we expect billings of between $111 million and $123 million, revenue of between $75 million and $84 million, adjusted contribution of between $39 million and $45 million and adjusted EBITDA of between negative $2 million and $2 million.

現在轉向指導。儘管經濟重新出現樂觀情緒，但我們的廣告客戶對 2023 年仍持謹慎態度。也就是說，考慮到季節性因素和我們對營運效率的關注，我們確實預期第三季業績將連續改善。考慮到這一點，我們預計第三季的帳單將在1.11 億美元至1.23 億美元之間，營收將在7,500 萬美元至8,400 萬美元之間，調整後的貢獻將在3,900 萬美元至4,500 萬美元之間，調整後的EBITDA 將在負200 萬美元至200 萬美元之間。

Our transformation into a product-led company is fully in place. I again want to commend our team's tireless work on improving the business. As we said in the past several quarters, the team is fully committed to achieving a profile of consistent growth and profitability that will allow us to fulfill our long-term potential. And with that, I will turn it back over to Karim.

我們向產品主導型公司的轉型已完全到位。我想再次讚揚我們的團隊為改善業務所做的不懈努力。正如我們在過去幾個季度所說的那樣，該團隊完全致力於實現持續成長和獲利能力，這將使我們能夠發揮我們的長期潛力。這樣，我會將其轉回給卡里姆。

We are committed to running the business with a disciplined focus and closing out the year strong. And I'm looking forward to discussing the new capabilities we are providing to our advertisers and partners with all of you. I will now open the call to questions.

我們致力於以嚴格的重點經營業務，並以強勁的業績結束這一年。我期待與大家討論我們為廣告商和合作夥伴提供的新功能。我現在開始提問。

(Operator Instructions) Our first question comes from the line of Kyle Peterson with Needham & Co.

（操作員說明）我們的第一個問題來自凱爾·彼得森 (Kyle Peterson) 和 Needham & Co. 的線路。

This is Sam on for Kyle today. Nice results here. I was wondering if you guys could talk a bit more about how ad budgets progressed throughout the quarter and maybe parse that out across some of the core verticals you guys are in?

這是今天凱爾的山姆。這裡的結果很好。我想知道你們是否可以多談談整個季度的廣告預算進展情況，並可能在你們所處的一些核心垂直領域進行解析？

Sure. Thanks for the question. So we've seen that overall, as we mentioned, consumer is definitely slowing overall. So as we mentioned during the call, the spend from consumer is down in retail by 3%, for instance, and only slightly up in travel when it was up quite dramatically over the last several quarters. So overall spend is only up 2% year-on-year, which means that, obviously, it has some level of impact on advertising budgets as well.

當然。謝謝你的提問。因此，我們看到，正如我們所提到的，總體而言，消費者的消費肯定在放緩。因此，正如我們在電話會議中所提到的，例如，消費者在零售方面的支出下降了 3%，而在過去幾個季度大幅增長的旅行方面，消費者支出僅略有上升。因此，整體支出年增 2%，這意味著，顯然，它對廣告預算也有一定程度的影響。

Having said that, there are 2 factors that are positive for us. One, we're seeing some of the products that we're driving to market starting to have an impact. And two, we're really driving more efficiency with our sales teams. Our sales teams are spending more time in market, and we are seeing more demand from advertisers as a result of that.

話雖如此，有兩個因素對我們來說是正面的。第一，我們看到我們推向市場的一些產品開始產生影響。第二，我們確實在提高銷售團隊的效率。我們的銷售團隊在市場上花了更多的時間，因此我們看到廣告商的需求也增加了。

The results have actually been, to some degree, are counterintuitive versus what we have seen on the consumer side, where some of the areas where we've seen a little slowness on the consumer side, again, namely travel versus the growth that we've seen before and restaurants where and retail where we've seen slowdown have started to come back for us. So a positive trend in this area for our business.

實際上，在某種程度上，結果與我們在消費者方面所看到的情況是違反直覺的，我們在消費者方面看到的一些領域有些緩慢，即旅行與我們的增長相比。見過的餐廳和零售業已經開始復甦。因此，這一領域對我們的業務來說是一個積極的趨勢。

Got it. That's helpful. Appreciate the color there. And then just thinking about the back half of the year, how are you guys thinking about ad budgets there? And maybe how does that stack up relative to your expectations from last quarter?

知道了。這很有幫助。欣賞那裡的顏色。然後想想下半年，你們如何看待那裡的廣告預算？也許與您上季的預期相比，情況如何？

Yes. I think we're still seeing some choppiness and that's why we are being cautious with regards to the back half of the year. But there's definitely some positive sign as well that are starting to be showcased both because of, again, the 2 items I mentioned before, the continued efficiency drives within our sales teams and some of our products coming through. But we're also seeing some positive signs from some of our clients who want to drive additional spend in the back half of the year. So there's positive discussions occurring there. Again, we need to be cautious with regard to what we're seeing, but there are definitely some positive signs of what we might see in the economy overall.

是的。我認為我們仍然看到一些波動，這就是為什麼我們對今年下半年持謹慎態度。但肯定也有一些積極的跡象開始顯現出來，這都是因為我之前提到的兩個項目、我們銷售團隊內部持續的效率提升以及我們的一些產品的推出。但我們也看到一些希望在下半年增加支出的客戶的正面跡象。所以那裡正在發生積極的討論。同樣，我們需要對所看到的情況保持謹慎，但總體經濟中肯定會出現一些積極的跡象。

Our next question comes from the line of Jason Kreyer with Craig-Hallum.

我們的下一個問題來自 Jason Kreyer 和 Craig-Hallum 的對話。

I just wanted to ask on your FI partner contract negotiations. I'm curious if you can maybe talk about what would -- what new products or services that you're providing that would encourage bank partners to want to renegotiate with terms that would be more favorable to Cardlytics. And then do you think that you can replicate the contract revisions that you've already seen with either existing FI partners or new FI partners that you're looking to onboard?

我只是想詢問你們的金融合作夥伴合約談判情況。我很好奇您能否談談您提供的哪些新產品或服務會鼓勵銀行合作夥伴重新談判對 Cardlytics 更有利的條款。那麼您是否認為您可以複製您已經與現有金融合作夥伴或您希望加入的新金融合作夥伴看到的合約修訂？

Thanks for the question. Listen, the important thing here, as I think I mentioned in the first call that we had when I moved to Cardlytics is that, we really are obsessed about our partners. I'm sure that we listen to their needs and that we provide the right level of tech and services to what they want to do to achieve better results for our partners and obviously, the consumers as well.

謝謝你的提問。聽著，這裡重要的事情，正如我在我搬到 Cardlytics 時的第一次電話中提到的那樣，我們真的很關心我們的伴侶。我確信我們會傾聽他們的需求，並為他們想要做的事情提供適當水準的技術和服務，以便為我們的合作夥伴，顯然也為消費者取得更好的結果。

I think we are making great improvements and strides towards that. We have excellent engagement and more senior engagement than we've ever had. We are better listening to what our partners want and creating products that mirror that. You can see some of these improvements, both in terms of the UI changes that we have made, but also in several of the new product trials that I've mentioned that are essentially driving benefits for both our partners, the consumers and advertisers.

我認為我們正在朝著這個方向取得巨大的進步和進步。我們擁有比以往任何時候都更出色的敬業度和更高的高層敬業度。我們更能傾聽合作夥伴的需求，並創造反映此需求的產品。您可以看到其中一些改進，無論是在我們所做的使用者介面變更方面，還是在我提到的幾個新產品試驗中，這些改進本質上都為我們的合作夥伴、消費者和廣告商帶來了利益。

I mentioned receipt-level offers that are coming through. We, again, have launched a spend -- target return on ad spend pricing pilot, which also will be helpful. And all of these things are essentially contributing to us having a better program that enables the banks to feel comfortable that we are the long-term partner for them and continue to invest in those changes with us.

我提到了即將到來的收據級報價。我們再次啟動了廣告支出定價試點的支出目標回報率，這也將有所幫助。所有這些事情本質上都有助於我們制定更好的計劃，使銀行感到我們是他們的長期合作夥伴，並繼續與我們一起投資於這些變革。

So it's an overall effort that we're making, but I have to commend the team both on the tech side, but also obviously on the partner side for enhancing the engagement that we have with our key banking partner.

因此，這是我們正在做出的整體努力，但我必須讚揚該團隊在技術方面以及合作夥伴方面加強我們與主要銀行合作夥伴的互動。

And Karim, since you've been there, you've talked a lot about product and making the right investments. You talked about a little bit of these in the last response here. But can you maybe highlight a few specific product improvements that you've rolled out? And more so curious, how are these manifesting in the numbers? You put up a really nice quarter today. Are we seeing those result in new bookings or new share? Or where should we see that in the numbers today and going forward?

卡里姆（Karim），自從您來到那裡以來，您已經談論了很多關於產品和正確投資的事情。您在上次回覆中談到了其中的一些內容。但您能否重點介紹一下您推出的一些具體產品改進？更好奇的是，這些是如何體現在數字上的？今天你的季度表現非常好。我們是否看到這些結果帶來了新的預訂或新的份額？或者我們應該在今天和未來的數字中看到什麼？

Yes. I think you are definitely starting to see that in the numbers to some degree, although obviously not at scale yet. But stepping back and to answer your question, the first thing that is really important that has changed is that the UI of the product is different to what it was before. And when you look at this UI that has rolled out 100% on Chase, the look and feel of the program is entirely different. And the look and feel of the program itself is driving more engagement at consumer level, which is really important for the program overall and obviously for the banks and for the advertisers. So that's the core thing already that is really important.

是的。我認為你肯定已經開始在某種程度上從數字中看到這一點，儘管顯然還沒有達到規模。但退一步來回答你的問題，第一個真正重要的變化是產品的 UI 與以前不同。當你看到這個在 Chase 上 100% 推出的 UI 時，程式的外觀和感覺完全不同。該計劃本身的外觀和感覺正在推動消費者層面的更多參與，這對於整個計劃非常重要，顯然對於銀行和廣告商來說也是如此。所以這已經是非常重要的核心事情了。

The second area is that as we think about new product initiatives that are helping enabling new product constructs some of them that I've just mentioned, so I won't go back into it. But enabling new product construct that create more interest in consumers, more engagement in the program are really critical as well to driving further engagement and activation.

第二個領域是，當我們考慮有助於實現新產品的新產品計劃時，建立了我剛才提到的一些新產品計劃，所以我不會再討論它。但是，啟用能夠引起消費者更多興趣的新產品構造、更多的參與該計劃對於推動進一步的參與和激活也至關重要。

And that essentially is what is starting to be reflected in numbers. But I think as you'll see over the coming quarters, as we gain more scale with more of our banking partners, you should see an even deeper impact across the whole of the business.

這基本上已經開始反映在數字中。但我認為，正如您在未來幾季中將看到的那樣，隨著我們與更多銀行合作夥伴的規模不斷擴大，您應該會看到整個業務產生更深遠的影響。

And I'm going to sneak in a third, sorry, but you mentioned Chase being fully rolled out. I'm just curious what with Chase have you seen that really clicks or that maybe clicks with Chase or your advertisers to prove or to validate this new user experience?

抱歉，我要偷偷地說第三個，但你提到大通銀行正在全面推出。我只是很好奇，您在大通銀行看到了什麼真正的點擊次數，或者可能是大通銀行或您的廣告商的點擊次數，以證明或驗證這種新的用戶體驗？

Well, again, we are seeing all of our key numbers, whether you're thinking about activations or redemptions or engagement in the program overall continue to improve. So these are very, very positive signal for us but we're making the right changes in the business.

好吧，我們再次看到我們所有的關鍵數字，無論您是在考慮激活、兌換還是參與該計劃的整體情況都在持續改善。因此，這些對我們來說是非常非常積極的信號，但我們正在業務中做出正確的改變。

Our next question comes from the line of Doug Anmuth from JPMorgan.

我們的下一個問題來自摩根大通的 Doug Anmuth。

This is Wes on for Doug. Great quarter, guys. I just kind of wanted to touch on the EBITDA guide, breakeven for 3Q at the midpoint. Just curious what that assumes in terms of investments into these newer products and kind of what you would see in each to kind of reach the upper end of that and kind of in flat-positive in 3Q?

這是韋斯為道格代言的。很棒的季度，夥計們。我只是想談談 EBITDA 指南，即第三季盈虧平衡點的中點。只是好奇對這些新產品的投資假設是什麼，以及您會在每種產品中看到什麼，以達到其上限，並在第三季度保持持平正值？

Thanks for the question. To a great degree, this is a continuation of the scaling of the products that we believe will happen across the quarter as well as continued discipline from a cost perspective. We are continuing to be cautious with regards to how we look at the advertising market in general, as we mentioned, and therefore, we are, again, being cautious with regards to how we guide based on what we see in the advertising market. But as we continue to roll out products as we continue to see improvements in the economy, we have potential to continue to do better from a financial perspective as well. So -- and the guide is essentially based on what we see now and the continued progress we're making both at product level and with advertising customers.

謝謝你的提問。在很大程度上，這是我們相信本季將發生的產品擴展的延續，也是從成本角度來看的持續紀律。正如我們所提到的，我們對如何看待整個廣告市場繼續保持謹慎態度，因此，我們再次對如何根據我們在廣告市場中看到的情況進行指導持謹慎態度。但隨著我們繼續推出產品，同時我們繼續看到經濟的改善，從財務角度來看，我們也有潛力繼續做得更好。因此，該指南本質上是基於我們現在所看到的以及我們在產品層面和廣告客戶方面取得的持續進展。

Great. I believe you kind of guided to around like $40 million, $42 million in cash OpEx before. Is that run rate -- quarterly run rate is still safe to assume here? Or is there any changes to that number?

偉大的。我相信您之前指導了大約 4000 萬美元、4200 萬美元的現金營運支出。在這裡假設季度運行率仍然是安全的嗎？或者這個數字有什麼改變嗎？

Yes. I'll let Rob take that on and add something, but that's essentially roughly the current trend in our expenses line. I don't know, Rob, if you want to add anything?

是的。我會讓羅布承擔這一點並添加一些內容，但這基本上是我們支出線當前的趨勢。我不知道，羅布，你還想補充什麼？

No. You certainly answered the question. It is no change from what we've told you guys in the past few quarters.

不，你確實回答了這個問題。這與我們在過去幾季告訴你們的情況沒有改變。

At this time, I am showing no further questions. I would now like to turn -- the conference back over to Karim for closing remarks. Please proceed.

目前，我沒有再提出任何問題。現在我想將會議轉回卡里姆致閉幕詞。請繼續。

Thank you. Obviously, this brings the call to a close. I want to leave you all with this. Product is at the forefront of our strategy and it is helping us build stronger partnerships and new capabilities that will attract more advertisers to our business. And as you know, we are highly focused on the long-term financial health of the business. Our expectation is positive annual adjusted EBITDA and operating cash flow for 2024. We'll continue to be disciplined as we make investments to reach our full potential. Thank you for your continued support, and I look forward to speaking with you all soon.

謝謝。顯然，這使通話結束。我想把這個留給你們大家。產品處於我們策略的最前沿，它正在幫助我們建立更強大的合作夥伴關係和新功能，從而吸引更多廣告商加入我們的業務。如您所知，我們高度關注企業的長期財務健康狀況。我們的預期是 2024 年年度調整後 EBITDA 和營運現金流為正。感謝您一直以來的支持，我期待很快與大家交談。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。